According to a number of rumors this morning, Google is about to acquire the well-known game development company Valve. Valve is best known for its Half-Life games and Steam, a content distribution platform which it uses to sell and distribute PC games from various developers with the help of a desktop client. Currently, Steam distributes close to 440 games and has over 15 million active users. We assume that Google is mostly interested in the technology behind Steam and no so much in the distribution or game development business of Valve.
Update: Valve calls these rumors a 'complete fabrication.'
Steam's technology would definitely be a good fit for Google, which, thanks to YouTube and other ventures, is getting more and more invovled in the content distribution business. On the other hand, though, while pushing out 30,000 Mbit of data is surely no easy feat, we can't help but wonder about why Google would need to acquire them. After all, if anybody has a lot of experience in distributing massive amounts of data, it would be Google itself.
Overall, even though the Inquirer cites "well placed sources," we can't help but wonder if this rumor will pan out to be true. Maybe Google will only take over the Steam part of Valve's business, or the two will announce some form of partnership.
However, if Google really wanted to get into the game distribution business, buying Valve would make perfect sense. Games are not only a growing business (though PC games, which Valve focuses on, are suffering greatly from piracy), but also a growing advertising platform. Having control over the distribution mechanism for these Games might just make sense for Google.
If this rumor turns out to be true, do you think Google is going to keep the Steam storefront open? Also, given Google's record of acquiring technology and then having it linger in the back of a server farm for years (think GrandCentral or Jaiku), do you think Google is actually going to make much use of this technology?
Comments
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While PC games are victim to piracy, the problem isn't so bad for Valve. Through Steam they've developed quite an effective means to combating piracy.
Now there is such a great focus on online play, it's extremely difficult to do that with pirate copies of the game.
- Rich
Posted by: Richard Millington | September 17, 2008 9:11 AM
Will they sell games for Android?
Posted by: Chrigu Schneider | September 17, 2008 9:27 AM
Google's record with acquisitions is not great. I believe they are basically innovator, not buyers. That's what they are good at.
Posted by: Adido | September 17, 2008 9:59 AM
I think this is possible and would fit with some of the other less known projects Google and it's employee's are part of. Google allows it's employee's to work on pet projects while at work. Once such project is WINE, which allows Linux users to run Windows applications. One of the biggest use's for WINE is to play Windows games on a Linux machine. It's no secret that Google is out for Microsoft's neck, and one of the big things that keeps the average user from using Linux is the lack of support for games. Of course, games aren't the only reason the average person doesn't use Linux, but if you pay attention to Google they are working on those things as well...can we say, Android?
Posted by: Scott | September 17, 2008 11:55 AM
Perhaps the best way to fight the piracy is to give better games for a lower price, a price as low as free, the way just google could do.
Free games are usually crappy copies of paid ones, or free to everyone but with a special account for those who pay a little bit more.
If google could find a way to find out about preferences of the costumer or to advertise through the games, there's your reason.
Posted by: Stefano Torres | September 17, 2008 11:58 AM